Article 80 of the Saudi Labor Law lists when an employer may end a contract without notice or award; Article 81 when an employee may leave with all rights.
Short answer: Article 80 allows an employer to terminate without end-of-service award, notice or compensation in nine specific cases, provided the employee is first given a chance to object. Article 81 allows an employee to leave without notice while keeping all statutory rights in seven cases, chiefly where the employer breaches essential obligations.
If you received a dismissal letter "under Article 80", are thinking of leaving because of unpaid salary or mistreatment, or are an employer checking that a decision is lawful, this guide explains both articles in their current wording, the conditions that are often overlooked, and how they relate to Article 77. For a review of your situation, see our labor lawyer service.
What does Article 80 say?
Article 80, as amended by Royal Decree M/46 dated 5/6/1436H, provides that the employer may not terminate without award, notice or compensation except in the following cases, and only after giving the employee the opportunity to state objections:
Assault on the employer, the responsible manager, a superior or a subordinate during or because of work.
Failure to perform essential contractual obligations, obey lawful orders or deliberately observe posted safety instructions, despite a written warning.
Proven misconduct or an act breaching honour or trust.
A deliberate act or omission intended to cause the employer material loss, provided the employer reports it to the authorities within twenty-four hours of learning of it.
Proven forgery to obtain the job.
The employee is on probation.
Unexcused absence of more than thirty days in a contract year or more than fifteen consecutive days, preceded by a written warning after twenty days in the first case and ten days in the second.
Proven misuse of position for personal gain.
Proven disclosure of the employer's industrial or commercial secrets.
Note: some sources still quote the old absence thresholds (twenty days, or ten consecutive days). The current amended text uses thirty and fifteen.
Which conditions are often overlooked?
Right to object: the employee must be allowed to state objections before termination.
Written warning: expressly required for paragraphs 2 and 7.
Reporting deadline: twenty-four hours in the material-loss case.
Proof: several paragraphs say "if proven", so an allegation alone is not enough.
If a condition is missing, the termination may be treated as being without a valid reason, with the award and compensation that follow.
What does Article 81 say?
An employee may leave without notice, keeping all statutory rights, if:
The employer fails to meet essential contractual or statutory obligations towards the employee.
The employer or its representative deceived the employee about working terms at the time of contracting.
The employee is assigned, without consent, work substantially different from what was agreed, contrary to Article 60.
The employer, a family member of the employer or the responsible manager commits violent assault or indecent conduct towards the employee or a family member.
The treatment by the employer or manager involves cruelty, injustice or insult.
There is a serious hazard at the workplace that the employer knows about and has not addressed.
The employer's conduct, especially unfair treatment or breach of contract, pushes the employee into appearing to have ended the contract.
Repeated late payment or non-payment of wages is often raised under paragraph 1, since paying wages is a core employer obligation.
How do Articles 80 and 81 differ?
Article 80 Article 81 Who ends the contract Employer Employee Basis Fault or situation of the employee Breach or conduct of the employer Notice Not required Not required End-of-service award Lost if conditions are met All statutory rights preserved Number of cases Nine Seven
How do Articles 77 and 80 differ?
Article 80 defines when an employer's termination is lawful with no award, notice or compensation. Article 77 sets compensation when termination is without a valid reason. If an employee is dismissed "under Article 80" and its conditions are not met, the question becomes Article 77 compensation; see our article on Article 77.
What does it mean in numbers? (illustrative)
Open-ended contract, six years' service, last actual wage SAR 8,000 (illustrative only):
End-of-service award under Article 84: (5 × 4,000) + (1 × 8,000) = SAR 28,000.
Lawful Article 80 dismissal: no award, notice or compensation.
Article 80 conditions not met: the award may be due, plus Article 77 compensation of 6 × 4,000 = SAR 24,000.
Leaving under Article 81 with the reason proven: statutory rights, including the award, are preserved.
Ordinary resignation: two thirds of the award under Article 85, about SAR 18,666.67.
Try your own figures with our end-of-service calculator and see our guide to end-of-service benefits.
What should you do if dismissed under Article 80?
Ask for the decision in writing, stating the paragraph relied on and the facts.
Check the conditions: were you allowed to object, was a written warning given where required, is there proof?
Put your objection in writing and keep a copy.
Do not sign a release or an admission before reviewing it.
Start amicable settlement with the Ministry of Human Resources and Social Development; claims must be filed within twelve months.
How do you use Article 81 correctly?
Document the breach before leaving: bank statements showing late salary, messages, witnesses.
Tell the employer in writing that you are leaving under Article 81 and why, so your departure is not treated as an ordinary resignation or absence.
Claim promptly.
Take advice first if you can; leaving without enough evidence can work against you.
Frequently asked questions
Can an employer dismiss under Article 80 without hearing the employee?
The text requires giving the employee a chance to object, and some paragraphs require a prior written warning.
Does a day or two of absence justify dismissal?
No. Paragraph 7 requires more than thirty days in a contract year or fifteen consecutive days, with a written warning at twenty or ten days.
Does late salary justify leaving under Article 81?
It is commonly raised under paragraph 1, but seriousness depends on the facts, so document it well.
Can an employee be dismissed for illness?
Article 82 prohibits termination for illness before the statutory sick-leave periods are exhausted.
Dismissed under Article 80, or considering Article 81?
Whether a paragraph applies, whether the procedure was followed, and what rights follow all depend on the contract and documents. Kawkaba Law represents individuals and companies in labor matters across Saudi Arabia, in person and remotely.
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Official sources: Saudi Labor Law – Bureau of Experts · Amicable settlement service – HRSD
Disclaimer: This article is general information about the Saudi Labor Law and is not legal advice for any specific case. Outcomes depend on the contract, facts and documents, so please consult a qualified lawyer before taking action.
